Your brother wants to borrow

$ 10 comma 500$10,500

from you. He has offered to pay you back

$ 12 comma 250$12,250

in a year. If the cost of capital of this investment opportunity is

10 %10%,

what is its NPV? Should you undertake the investment opportunity? Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged.

If the cost of capital of this investment opportunity is

10 %10%,

what is its NPV? The NPV of the investment is

$636.37636.37.

(Round to the nearest cent.)

Should you undertake the investment opportunity?

Since the NPV is

, you should

the deal! (Select from the drop-down menus.)

Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged.

The IRR is

nothing%.

(Round to two decimal places.)The maximum deviation allowable in the cost of capital is

nothing%.

(Round to two decimal places.)